Here’s all you need to know about Birla Sun Life Fixed Term Plan

By: | Published: March 6, 2017 2:55 PM

Birla Sun Life Fixed Term Plan, as the name suggests, is a close-ended income scheme which is coming up in a number of series, ranging from Series OL to Series OU. Further, each Series shall be denoted by its duration / tenure in its name.

The scheme seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme.

Birla Sun Life Fixed Term Plan, as the name suggests, is a close-ended income scheme which is coming up in a number of series, ranging from Series OL to Series OU. Further, each Series shall be denoted by its duration / tenure in its name.

For e.g: Series launched with duration / tenure of 368 days shall be denoted as Birla Sun Life Fixed Term Plan – Series __ (368 days). This product is suitable for investors who are seeking:

Income with capital growth over short/ medium/ long term
Investments in debt and money market securities maturing on or before the tenure of the scheme

However, investors should take the guidance of a financial adviser before making such investments.

Investment Objective
The scheme seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme. The scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.

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Liquidity
The scheme will have a duration/tenure of 30 days to 62 months from and including the date of allotment. The duration of the scheme would be determined and disclosed at the time of filing of Final Scheme Information Document with SEBI before the launch of each scheme. The NAV of the scheme will be announced on every business day. No redemption or repurchase will be permitted prior to the maturity of the scheme. The scheme will be listed on NSE and/or any other recognized stock exchanges as may be decided by AMC from time to time and the unitholders who wish to redeem units may do so through a stock exchange at the prevailing listed price on such stock exchange.

Flexibility
The Mutual Fund will allow investors the flexibility to switch their investments (subject to minimum application amount under the scheme) from any other scheme(s) / plans managed by Mutual Fund as per the features of the respective scheme, and / or close ended scheme(s) / plans offered by the Mutual Fund to Birla Sun Life Fixed Term Plan-Series OL to Series OU during the New Fund Offer period.

Plans/ Options offered
Each Series of the Scheme will have Regular Plan and Direct Plan with a common portfolio and separate NAVs. Investors should indicate the Plan for which the subscription is made by indicating the choice in the application form.

Minimum Application Amount
Minimum of Rs 1,000/- and in multiples of Rs 10/- thereafter during the New Fund Offer period.

Transparency / NAV Disclosure
The AMC will calculate and disclose the first NAV(s) of the scheme not later than 5 business days from the date of allotment. Thereafter, the NAV will be calculated and disclosed for every business day. NAV of the scheme will be calculated up to four decimal places and shall be published in at least two daily newspapers on daily basis in accordance with the SEBI (MF) Regulations.

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Loads
Entry Load: Nil
Exit Load: Nil
No entry load will be charged by the Scheme to the investor effective August 01, 2009. The upfront commission, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so through stock exchange mode.

For further clarification, you can visit the official website of birla sunlife. You can also refer to the scheme information document (SID) present on the SEBI website.

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